No. of Recommendations: 1
Just be careful about leverage -- I'd avoid it as it ramps up the expenses, and it's unclear at this point in the cycle whether it'll help or really hurt you.

All of my Muni-CEF's are leveraged. All the nuveen AZ muni-CEF's are leveraged. During an inverted or flat yield curve leverage doesn't work, so they don't do any. But, the leverage accomplished in the past, has increased the holdings, so they still yield higher than the unleveraged ones.(there are few of these, as folks don't want them. I think Nuveen only has about 5 un-leveraged funds.

I have 5 AZ muni-CEF's, (when I add, I buy the best deal at the time).
I have 3 Nat'l muni-CEF's; NEA; NXZ; and EIM. All have been performing well, the state specific ones are yielding around 4.6%-4.8%. The natl's are in the 5%-5.5% area, with depressed payouts from a yr ago. As the curve goes back to normal, and leverage can 'kick-in' again, these payouts will increase.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.